If you are having a Christmas party for your staff then you'll need to consider the potential Fringe Benefits Tax (FBT) implications. FBT basically covers any benefit provided to an employee (or an associate of an employee, like a spouse or child) that isn't salary & wages. This could be a company car or the provision of meals (either in or out of the office).

There are a few exemptions that can get you out of paying FBT in relation to your Christmas party as follows:

• Exempt property benefits - if you're having the Christmas party at the office for current employees during regular office hours then there is no need to worry about FBT,
• Exempt minor benefits - if you're having the Christmas party at an external venue (restaurant, pub, etc.) and the cost per head is under $300 then there is no need to worry about FBT. This covers staff and their associates. Note that the $300 threshold is per benefit, so the Christmas party would be considered separate to any gift given to an employee.

As always, the above is a general guide only and does not constitute advice. If you think this may apply to you then you should speak with your accountant.